bobo
recently joined
Reged: 03/21/07
Posts: 3
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Greetings all, I am preparing to start a 2 year sep in maryland leading to a uncontested divorce.
There were a few affairs on my wifes part, but I am notpursuing that. Just a plain old uncontested divorce.
Here are the numbers involved, and a few questions.
Home value (joint): 400k , home debt 250k.
Car paid off(joint): 20k.
Truck value(my name): 22k, unpaid 28k (major depreciation).
Wifes 401k: 75k.
We each have approx 20k each in our own bank cards.
I am playing nice, and think she might do the same. Here are the questions:
Should we sell the paid off car, and split the sale price (leaving her without a car)?
I dont know how else to split that value.
Should I expect 1/2 of the 401k?
Last note is that I make 65k a year, she makes 68k.
My solution to all of this is split the home equity and I take the car (20k) and she gets the whole 401k.
I know I lose, but this seems much easier.
Thanks in advance.
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preemiemom
Carpal \'Tunnel
Reged: 01/17/07
Posts: 19391
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You don't mention how long you were married, nor how long your wife had the 401K.
You would only be entitled to, I believe, half of the portion of the 401K that was accrued WHILE you were married. So, if you were married one year...you would be entitled to one half of the one year's worth of contributions.
There is doubtful any consideration for "future value". Things are assumed at their value at the time of the split.
As long as the house was acquired during the marriage, that would be split equally so you would be entitled to half of the equity, as would she.
Even though each of your credit card debts is in each of your name's.. was the debt acquired BEFORE or after the marriage? If after, you are both responsible.. since it's equal amounts in each of your names.. easy enough to split.
You mentioned in another posting that your wife wanted to keep the home, you did not not and wished to sell and split equity. Another alternative is that she keep the home.. and refinance (which she'd likely want to do anyway to get your name off of the loans) and take out additional monies to buy you out of a) your share of the credit card debt and b) your truck debt.. leaving you with zero debt and a truck you now own outright.. and leaving her with the remaining equity in the property and the remaining credit card debt.
Doing it that way would give you $42K in the $75K that is your half of equity. She could take out additional equity to pay out your remaining "share".
Based on the amount in her 401K.. it would take quite a long time to build up that amount.. I'm going to guess your rights to that are limited.. And also, you have NO 401K? NO pension??? Have you worked where you work 5 years or more? White collar job? It's possible you have a pension and you don't know it? If so, she's entitled to have of THAT... which technically, could offset what she would "owe" you for your share of her 401K...
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joan
enthusiast
Reged: 09/24/04
Posts: 248
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There are a lot of ways to split your assets. You all have a net worth of $199,000 if all of the items you listed are marital. Therefore, each of you should walk away with $99,500 in some fashion. So if your STBX wants to keep her car, you want to keep your car and she wants to keep her 401k you could sell the house and split things as follows:
You
+$22,000 car
-$28,000 car loan
-$20,000 credit card
+125,500 home equity
__________________
+$99,500
Her
+$20,000 car
+$75,000 401k
-$20,000 credit card
+$24,500 home equity
____________________
+$99,500
Or she could give you the 401k; keep her car, and her credit card debt. She would have to pay you $50,000 for your equity in the house:
You
+$22,000 car
-$28,000 car loan
-$20,000 credit card
+$75,000 401k
+$50,500 home equity
__________________
+$99,500
Her
+$20,000 car
-$20,000 credit card
+$99,500 home equity
____________________
+$99,500
If she really, really wants to keep the house: she would have to give you the 401k and her car and take on all of the credit card debt. She would still have to pay you $10,500 for your equity in the house:
You
+$22,000 car
-$28,000 car loan
+$75,000 401k
+$10,500 home equity
+$20,000 sale of her car
__________________
+$99,500
Her
-$40,000 total credit card debt
+$139,500 home equity
____________________
+$99,500
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